NEDA-ICC okays Manila sewerage proj

The Cabinet-level Investment Coordination Committee (ICC) of the National Economic Development Authority (NEDA) has given the go-signal for the Manila Third Sewerage Project (MTSP), a World Bank-funded program to be undertaken by the Ayala-controlled Manila Water Co.

The P4.3-million project would include the rehabilitation of existing sewerage systems and the construction of new ones, as well as technical assistance for information dissemination and follow up programs in the Metropolitan Waterworks and Sewerage System (MWSS) east concession area.

Realizing the need for additional sanitation facilities for the proper disposal of waste water especially in Metro Manila, the NEDA-ICC said the MTSP is also consistent with the goals of the Arroyo administration’s six-year Medium-Term Philippine Development Plan (MTPDP).

Manila Water is the concessionaire for the east zone, which includes the cities and municipalities of San Juan, Mandaluyong, Marikina, Pateros, Pasig, Taguig, Rizal, and parts of Makati and Quezon City.

Under the project, the Land Bank of the Philippines (LBP) will borrow from the World Bank and relend the fund to Manila Water.

As a precondition, however, LBP and Manila Water should secure a resolution from participating local government units(LGUs) indicating commitment to participate in the project.

The ICC also approved the World Bank’s proposed loan extension for the Third Rural Finance Project.

The loan extension was aimed to postpone the loan’s closing date by one and a half years from June 2005 to Dec. 2006 and to disburse the balance of $38 million.

This supports the provision of short, medium and long-term loans to finance private investment in the countryside and the preparation of institutional development plans for the LBP, the implementing agency for the project and the People’s Credit and Finance Corp. (PCFC).

The ICC also granted clearance on a "no-objection basis" to the request of the National Power Corp. (Napocor) to transfer the interests of Argentina’s IMPSA (Industrias Metalurgicas Pescarmona Sociedad Anonimas) in CBK Power Co. Ltd., under the Caliraya-Botocan-Kalayaan

Build-Rehabilitate-Operate-Transfer (CBK-BROT) power project, to Electric Power Development Co. Ltd. (J-Power) and Sumitomo Corp. through their corporate vehicle, CBK Netherlands Holding B.V., pursuant to the Build-Operate-Transfer (BOT) Law.

The ICC noted that such transfer constitutes a revision in the CBK-BROT Second Accession Undertaking, as approved by the ICC in Sept. 2000.